Tuesday 8 June 2021

How public sector corruption withers national economy: RJ’s insight

 

 SPECIAL REPORT : Part 371

Published

 

June 29, 2001: The late Rajeewa Jayaweera with the then CEO Peter Hill in Chennai where he was SriLankan Airlines Manager, Southern India. Pic was taken the night before Rajeewa left for France to take over as Manager, France (pic courtesy Sanjeewa Jayaweera)

 

By Shamindra Ferdinando

One-time SriLankan Airlines senior management employee, the late Rajeewa Jayaweera (RJ), in a series of articles, dealt mercilessly with the national carrier. The series of articles, published in The Island and The Sunday Island, reflected what can be easily described as the pathetic state of affairs in public finance.

The explosive reportage of the deterioration of SriLankan Airlines, between Feb 2015 and March 2020, underscored the overall failure on the part of the country’s supreme legislature, Parliament, to ensure financial discipline, not only at the national carrier, but the entire public sector, as well. The Colombo Telegraph, too, carried quite a number of RJ’s articles during this period.

Having perused the 143 page e-book, comprising 41 articles, recently, the writer asked COPE (Committee on Public Enterprises) Chairman Prof. Charitha Herath whether the national carrier came under the purview of his outfit, COPA (Committee on Public Accounts) or COPF (Committee on Public Finance). Lawmaker Herath responded: “Yes. Under the parliamentary watchdog COPE. We are going to summon them soon.”

Perhaps, RJ’s series of articles can be quite helpful to the parliamentary watchdog committees, if they are genuinely interested in taking remedial measures, in respect of the national carrier. RJ’s brother, Sanjeewa Jayaweera (SJ), himself a contributor to The Island, and other media outlets, as well, hadn’t been successful in publishing the series of articles on the national carrier, as a book, to coincide with the first death anniversary of his brother RJ.

SJ’s attributed his failure to secure consent of a leading publisher as he didn’t own the intellectual property rights. SJ’s efforts to publish RJ’s articles on foreign relations, too, has met with a similar fate.

RJ’s body was found at Independence Square, on the morning of June 12, last year. He was 64 years at the time of his death.

At the inquest into the death of RJ, before the Colombo Chief Magistrate, Lanka Jayaratne, on June 22, 2020, it transpired that it was a suicide. RJ committed suicide on the night of June 11. SJ assured court that he was certain RJ committed suicide. When the writer inquired about the circumstances leading to RJ’s suicide, SJ reiterated he never had any suspicions about quite the unexpected, but meticulously planned suicide.

In a country where the Central Bank has been ‘raided’ not once but twice and every public sector enterprise brazenly ‘raped’ by successive governments, a set of published articles cannot be launched, in book form, in the absence of intellectual property rights.

 

Focus on national carrier

Of over 300 articles, authored by RJ, only a section dealt with the national carrier. RJ’s relentless campaign against those who had been responsible for waste, corruption and irregularities at SriLankan must have angered many of those wrongdoers for being exposed after having got everything swept under the carpet, as happens so often in this country.

Having served SriLankan Airlines for over 15 years, RJ had been in a much better position, than many, to comment on the ruination of the national carrier.

However, thick-skinned politicians, and top officials, didn’t publicly react to RJ’s comments. If they really understood the implications of the continuing disclosures, RJ would have earned their wrath. In his first piece on the national carrier, titled ‘SriLankan Airlines: Parliament reveals UL loss is over Rs. 100 bn’ on Feb 6, 2015, RJ in one sentence explained what went wrong with the public enterprise. Referring to the launch of, what he called, the ‘Gulf Carrier of Dubai,’ with USD 10 mn investment made by the then Ruler there, in 1985, RJ declared; “The secret of their success was the Ruler never appointed relatives, his minions, civil servants, ex-army generals nor businessmen to run the airline.”

Having joined the national carrier, as a Marketing Executive, in June 1989, he received a promotion as Manager (Advertising and Promotions) and subsequently served as Manager Oman and Yemen, Manager Southern India, Manager France, Benelux, Scandinavia and Southern Europe before quitting in July 1995. Thereafter, RJ served Qatar Airlines (August 2005 to October 2009) as Regional Manager Sri Lanka, Bangladesh, Nepal, Maldives and Myanmar. RJ rejoined Sri Lankan Airlines and served as Manager Germany from October 2010 till May 2011 (during Mahinda Rajapaksa’s second term as President)

RJ had been in touch with the writer, though the national carrier was never the subject of discussions. The focus had always been on the conflict and post-war issues, particularly Sri Lanka’s failure to address accountability issues. RJ had been severely critical of the way the yahapalana lot responded to the growing Western threat and, essentially, there was consensus that the then administration deliberately discarded Lord Naseby’s strategy which could have been quite useful, if properly used. RJ took his life three months after the incumbent government withdrew from the 2015 Geneva Resolution. If RJ was alive today, he would have been quite disturbed over how the incumbent administration, too, handled the Geneva issue. RJ used to call the writer at the latter’s home. On many occasions, the writer’s wife, Dilhani, overheard our noisy exchanges and used to inquire as to what was wrong. We used to disagree on the response of the UNP-led government and Joint Opposition/SLPP as regards foreign policy and accountability issues.

Let me get back to the plight of the national carrier. In a follow-up piece, dated Feb 11, 2015, RJ stated that: “The general perception is that Air Lanka/SriLankan Airlines is an expensive toy of the rulers of the day, and a few of the elite – all at the expense of the taxpayer.” Having said so, RJ stated: “Even though there is some truth in it, it is indeed not the whole truth. Contrary to general perception, the national carrier has played a pivotal role, both in helping the nation’s economy and welfare of its people by bringing the world to Sri Lanka and taking Sri Lanka to the world.”

The writer is of the view that RJ made a futile attempt (Feb 11, 2015 piece) to restore the much tarnished image of the national carrier. One cannot find fault with RJ for being lenient in a way immediately after he initiated the onslaught on the national carrier. Subsequently, RJ meticulously addressed issues at hand, thereby exposed ‘white-collar crime.’

RJ exposed both the SLFP and UNP administrations. Catchy titles attracted, both print and online readers, including the writer, though going through all 41 articles at a stretch provided an entirely different insight. RJ didn’t mince his words when he zealously hammered those who undermined the national carrier, through waste, corruption, irregularities and outright mismanagement.

If RJ didn’t take his own life, perhaps he wouldn’t have ever thought of launching a book, at least on an e-form. Thanks to SJ, now the entire set of articles is available online and this writer believes, in addition to lawmakers, especially heads of the watchdogs (Prof. Charitha Herath/COPE, Prof. Tissa Vitharana/COPA and Anura Priyadarshana Yapa/COPF), leaders of the major political parties (the writer wants to consider the UNP a major political party though being reduced to one National List slot) and the media should access the material. Let me reproduce the catchy titles given to RJ’s articles (1) SriLankan Airlines: Parliament reveals loss is over Rs 100 bn (2) SriLankan Airlines: Parliament reveals loss is over Rs 100 bn: The unknown (3) What ails our national carrier (4) What ails our national carrier-continued (5) What ails our national carrier-iii (6) The passing of an aviation legend and lessons to be learnt (7) What ails out national carrier IV (8) National carrier’s Airbus story-going down the memory lane (9) All is not well @ SriLankan Airlines (10) SriLankan Airlines – a tale of state abuse and mismanagement, the ‘games’ Directors and VIPs played (11) SriLankan Airlines – exit strategy the need of the hour (12) Other side of the coin on Emirates deal – a comment (13) SriLankan Airlines – expensive toy of our politicians (14) A tale of two national carriers (15) Paris exit and Frankfurt exit by Airlines (16) Business Class divide at SriLankan Airlines (17) Independent Inquiry at SriLankan Airlines goes awry (18) Independent Inquiry at SriLankan Airlines goes awry-ii (19) What’s with 2015-16 annual report of SriLankan Airlines (20) Full time CEO to Part time CEO-pilot (21) No significant savings in procurement and fees paid to service providers (22) Brighter or darker skies over SriLankan Airlines (23) Total privatization only solution for SriLankan Airlines (24) SriLankan Airlines continues downward spiral (25) SriLankan Airlines total privatization or liquidation (26) More on SriLankan back on track (27) Saving the national carrier – a rejoinder (28) Minister Kabir Hashim’s hogwash (29) New brooms @ SriLankan Airlines (30) Who is managing SriLankan Airlines (31) Emirates remembers, the world remembers (32) More facts to remember on Emirates (33) India’s failed bid to disinvest Air India (34) Presidential air travel and the nut episode (35) Fleecing SriLankan Airlines (36) SriLankan violates Companies Act (37) Srilankan Airlines long overdue AGM (38) tale of woe continues @ SriLankan Airlines (39) SriLankan Airlines deal (40) USD 16.8 mn bribe at SriLankan Airlines and (41) Evidence given before Presidential Commission of Inquiry

 

Absence of accountability

RJ’s series of articles highlighted a bleak picture not only at the national carrier but the entire public sector. In a way, the parliamentary committee system had pathetically failed in its responsibilities. The accumulated losses suffered by the national airline now stands at a staggering Rs. 326 Bn with the two-state banks – BOC and People’s Bank – continuing to bear the losses. A year after RJ’s suicide, the national economy is in tatters. The country would have been in a much stronger position, to weather the Covid-19 fallout, if not for waste, corruption, irregularities and negligence. Both former major political parties – the UNP and the SLFP – mercilessly abused the national carrier to their hearts’ content. Articles titled ‘SriLankan Airlines deal’ and USD 16.8 mn bribe at SriLankan Airlines discussed how the Rajapaksa and Sirisena-Wickremesinghe administration ruined the national carrier. The accountability on the part of President Maithripala Sirisena, as he was the head of the cabinet, cannot be ignored.

RJ alleged: “The Rajapaksas appointed relatives (This is not the reality). The Yahapalanites appointed friends from their alma mater and party hacks. The following are the Directors appointed by the Yahapalana government in February 2015 and their connections.

Chairman Ajith Dias (Prime Minister’s friend and ex-Royal College). Chanaka de Silva and Mahinda Haradasa, (PM’s friends, ex-Royal College, and members of UNP Working Committee), Rajan Brito (former President CBK’s friend), Hadindra Balapatabandi (former President Sirisena’s friend), Rakhitha Jayawardena (PM’s relative and old Thomian), Lt. Col. (Retd.) Sunil Peiris (Ravi Jayawardene’s friend and old Thomian), and N. De Silva Deva Aditya (PM’s friend and MP in European Parliament).

CEO Suren Ratwatte, a pilot by profession, was the younger brother of the PM’s financial advisor. Ratwatte’s ill-advised appointment had far-reaching consequences. At the end of six months, some directors wished to extend his probation period and assign Key Performance Indicators for evaluation in a few months. However, both the Prime Minister and Minister Kabir Hashim instructed the directors to confirm him in his post without delay (Board Minute 2.6 dated April 28, 2016)”.

RJ meticulously addressed contentious issues pertaining to the national carrier. Controversial SriLankan CEO Kapila Chandrasena received RJ’s attention. The expose of Chandrasena before the Presidential Commission of Inquiry should be re-examined against the backdrop of the arrest and the subsequent bail out of Kapila Chandrasena and his wife, Priyanka Niyomali Wijenayake over receiving USD 2 mn commission from Airbus Industrie in a deal that had been discussed in the official residence of the then Speaker Chamal Rajapaksa on March 1, 2013. RJ quite aptly compared Speaker Rajapaksa’s initial denial of any knowledge of the meeting with that of Finance Minister Ravi Karunanayke’s performance before CoI on Treasury Bond scams.

The government owed a public explanation as regards the status of the bankrupt national carrier. The ruination of the national carrier can be easily blamed on the top leaderships of the UNP and the SLFP. There cannot be any dispute over that or for anyone to be offended by the revelation of that fact. The then President’s brother-in-law Nishantha Wickremesinghe conduct/misconduct received wide media coverage after the change of government. The Presidential CoI exposed the sorry state of affairs at the national carrier and how those at the helm caused irrevocable losses.

 

The shock return of Chandrasena

RJ, however, missed a crucial development in the national carrier close on the heels of President Sirisena sacking Ranil Wickremesinghe’s government.

Only a section of the media, including The Island, reported the unbelievable development pertaining to the national carrier. The change of government paved the way for the return of Kapila Chandrasena, though the shocking revelations made in the Presidential CoI were still fresh in public minds. In fact, Chandrasena was one of the first appointments made by the 50-day government.

Civil society activist Gamani Viyangoda was one of the few people to publicly question the appointment. In a brief interview with the writer, Viyangoda alleged that Chandrasena’s appointment as Chairman of the debt-ridden SriLankan, in spite of an ongoing investigation, indicated that those who had exercised executive power previously were back in business (Civil society seeks explanation on top Sri Lanka appointment made amidst probe, The Island, Nov 14, 2018).

In the wake of the growing storm created by his shock reappointment, the government removed Chandrasena. The question is whether Chandrasena acted alone?

Subsequently, a high profile criminal investigation undertaken by the UK’s Serious Fraud Office (SFO), too, implicated top SriLankan management in the bribery scandal. In the wake of media revelations pertaining to Priyanka Niyomali Chandrasena, nee Wijenayake, being offered up to USD 16 mn in bribes to pave the way for a massive deal involving a dozen new Airbus planes, President

Gotabaya Rajapaksa called for an investigation. This was in the first week of Feb 2020.

“President Gotabaya Rajapaksa has ordered a comprehensive investigation into reports of allegations over financial irregularities said to have been committed during the deal between SriLankan Airlines and Airbus SE for the purchase of aircraft,” his office said.

Of the amount offered, at least USD 2 mn had been received by Chandrasena’s wife. Nothing has been heard of that investigation since then. In fact, examination of COPE, COPA and COPF proceedings reveal that greater the fraud/corruption/irregularity/negligence the chance in suppressing the wrongdoing is guaranteed.

SJ should ensure that even though the intellectual property rights law has deprived him of an opportunity to publish a book comprising an entire set of articles on the ruination caused to SriLankan Airlines, as many people as possible receive the 41 e-articles. If not for RJ, there wouldn’t have been such a collection of articles on the national carrier. It should be compulsory reading for lawmakers and the past and the incumbent presidents. Those who wielded political power should be ashamed of the way they allowed the deterioration of the once proud national carrier.

The top management, as well as a section of utterly corrupt employees, brought the national carrier to disrepute. Proper investigation would reveal how many SriLankan employees, past and present, lived well beyond their means.

RJ cleverly used his coverage of the SriLankan Airlines to expose the depth of corruption not only in the ‘land like no other’ but the public and private sectors as well. Such mega waste, corruption and irregularities cannot take place without the public and private sectors working together. Robber barons and their minions lived in luxury whereas the vast majority of people struggled to make ends meet. The Covid-19 virus has now made the situation even worse. Having sort of compared investigations into Treasury bond scams, perpetrated in 2015 and 2016, and SriLankan Airlines, at different levels, RJ quite rightly asserted that they were ‘AN UTTER WASTE OF PUBLIC FUNDS.’ If proper investigations are conducted into waste, corruption and irregularities in public and private sectors, political parties will have to be disbanded.

Let me end this piece by repeating what one-time Justice Minister and BASL President Dr. Wijeyadasa Rajapakse, PC, said, in June 2019, at a media briefing at the Sri Lanka Foundation. In response to a query raised by the writer, the lawmaker said: “Yes. Parliament is the most corrupt institution in the country.”

Having switched his allegiance to the SLPP, from the UNP, Dr. Rajapakse remains a member of the most corrupt institution in the country.